An independent chocolate maker has entered liquidation following a bitter dispute with a key supplier. South African company Beyers Chocolate has been in business for almost 40 years after being founded by Kees Beyers – a Belgian immigrant to the country in the early eighties.
According to the Financial Mail, the company entered the liquidation process, because of a commercial dispute over exclusivity with South African retail giant Woolworths, which is one of its biggest single customers. Woolworth is the biggest client of Beyers Chocolates, who also supplies Clicks, Shoprite, Pick n Pay, Spar, Massmart and other retailers with its expanded Sweetie Pie and other ranges. It also does contract manufacturing for Mondelez International (owners of Cadbury), Amarula and coffee chain vida e caffè , according to its website.
At the company’s peak, it produced 80 tonnes of chocolate weekly across 75 product lines for Woolworths, a scale unmatched by other independents.
The dispute reportedly centred on Beyers Chocolate’s factory expansion, which allegedly put its exclusive agreement with Woolworths at risk.
Woolworths has declined to give details, saying only: “Woolworths cannot comment on the nature of our relations with Beyers due to confidentiality concerns.”
However, the company confirmed that Beyers Chocolate would continue to be stocked in its stores.
It said in a statement: “We can… share that Woolies chocolate – including Chuckles – is still the exceptional quality that our customers love and expect, and it is widely available across the country.”
According to the Beyers Chocolates website, the group has been crafting “South Africa’s finest chocolates’ since 1987.
“Fuelled by a passion for chocolate ignited by Kees Beyers, a Belgian master chocolatier, Beyers Chocolates has been a family affair since its beginnings. Using his heritage and handcrafted techniques, Kees brought the magic of Belgian chocolate to South Africa,” it says.
At its peak, the company employed between 700-1,000 people.
It comes as the global chocolate industry continues to come under pressure from soaring cocoa prices, climate disruption in West Africa, supply shortages and changing consumer habits.
Worldwide, major brands are facing higher costs, while smaller producers are squeezed more than normal. Producers are also grappling with higher energy, labour and transport costs, while consumers resist price rises.
